MC DONALD’S

INTRODUCTION

•McDonald’s is the world's leading food service

retailer with more than 30,000 restaurants in 119
countries serving 47 million customers each day. It
is one of the world's most well-known and valuable
brands and holds a leading share in the globally
branded quick service restaurant segment of the
informal eating-out market in virtually every
country in which they do business.
HISTORY

• Richard and Maurice McDonald were pioneers of McDonald’s and

the quick service restaurant industry. Ray Kroc was the founder of
McDonald’s Corporation. McDonald’s success today is rooted in the
work of all three.

• In the late 1940s, Dick and Mac McDonald’s pioneers of

McDonald’s were searching for a way to improve their little drive-in
restaurant in San Bernardino, California, U.S.A.; they invented an
entirely new concept based upon speed service, low prices, and big
volumes. Word of its success spread quickly, in 1952 they had more
than 300 franchising inquiries a month from all over the country.
Joining of Ray Kroc in 1954, and foundation of the company that
evolved into McDonald’s Corporation was the major turning point
in the history of McDonald’s. McDonald’s is now the largest and
best-known foodservice retailer.
MCDONALD’S INDIA

• McDonald’s opened its doors in India in October 1996.

They have restaurants in Mumbai, Delhi, Pune,
Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida
Faridabad, Doraha, Manesar and Gurgaon.
• McDonald’s in India is a 50-50 joint venture partnership
between McDonald’s Corporation [USA] and two Indian
businessmen. Amit Jatia’s company Hardcastle
Restaurants Pvt. Ltd. owns and operates McDonald’s
restaurants in Western India. While Connaught Plaza
Restaurants Pvt. Ltd headed by Vikram Bakshi owns and
operates the Northern operations.
 BRANDING
 McDonald's is an example of brand franchising.Being
their own boss in return, the franchisee agrees to operate
the restaurant in accordance with McDonald's standards
of quality, service, cleanliness and value.
 
 The cooking processes in McDonald's restaurants are
broken down into small, repetitive tasks, enabling the
staff to become highly efficient and adept in all tasks.
 
 There is no need to develop the product or do expensive
market research.
 
 It begins with working in a restaurant,
 wearing the staff uniform and learning everything from
cooking and preparing food to serving customers and
cleaning.
 
 It recognises that the success and profitability of McDonald's
is inextricably linked to the success of the franchises.
 
 Benefit from national marketing carried out by McDonald's
A brand is a name, term, sign, symbol or design, (or a
combination of these) which identifies one organisation's
products from those of its competitors.
 CONSUMER BEHAVIOUR
ASPECT

• Marketers need in-depth knowledge about the various

dimensions which link consumer behavior. There is
research required to find out the eating habits of people
in a competitive context. McDonald’s found that a major
chunk of its consumers decide to eat a few minutes
before they make the purchase decisions and hence it is
building small outlets in large supermarkets such as Wal-
Mart and Home Depot. It is providing play areas to
ensure a number of families visit its outlets with
children.
INDIAN MARKET- OVERVIEW

• “You can never penetrate the Indian market without

making an effort to understand the country’s culture and
mindset”,
• Although ‘fast food’ is ingrained in the culinary culture
of India, the passage of time has not really resulted in
any sort of evolution in the manner in which our
traditional fast-foods are prepared or served. It’s still
very much a ’cottage industry’ with street vendors
accounting for almost all the sales. One cannot imagine a
day when the street-side ‘vada pav’, ‘chaat’ or
‘sendvitch’ stall in our cities will disappear. It’s such an
integral part of who we are as Indians. .
•  
SEGMENTATION AND
TARGETING

• Segmentation strategy:
• The segmentation strategy of McDonald’s can be discussed under the
following heads.
•  
•  
• Geography:
• Geographically McDonald’s seem to have categorized the entire Indian
market as urban and rural markets. As a strategy for entering the Indian
market McDonald’s appear to have adopted the segmentation at the
micro level, by directing the entire focus towards only urban market.
McDonald’s India as of today caters only to the urban population in
India.
• There could be several reasons for this, like the rural eating
habits, their affordability and traditional approach towards food.
• Demography:
• Demographically the McDonald’s appears to have segmented its market
on the following parameters.
• Income level:
• in a market like India where a significant proportion of India’s population lies in
the lower income bracket, the price of the products becomes very critical. Now
the challenge was to provide quality products at prices affordable to urban
masses.
• The pricing of the products is done keeping in mind the wants of the middle
class and the upper middle class, the income category which has grown at a very
significant pace over the past few years. For example, the chain has a product
called Mc Aloo tikki costing Rs:20/, which caters mainly to the student
community whose pockets are not broad enough
• Age:
• The earlier strategy of the McDonald’s was to segment the market on the basis
of the age, by catering mainly to the kids and youth. However, now they are
trying to blur this segmentation and focus on the all age groups.
• Family:
• McDonald’s is now targeting the entire family by offering various incentives
packed product schemes like “family meals” at a very competitive price
BEHAVIOURAL SEGMENTATION:

• Occasions:
• Under this segmentation the McDonald’s has classified customers on the
basis of the frequency of their visits, into regular and occasional
customers. Now, to maximise the cluster of regular customers they are
coming up with ad lines like “BAHAANA KYA HAI” so that the
customers don’t look for a special occasion to visit the outlet.
• Current position in the Indian market:
• However in spite of adopting all of the above segmentation and
marketing strategies hard realities do exists.Nine years after the big mac
first set up in India, the burger gaint has yet to make a rupee as net
profit. It hopes to break even in a year or two. In India a Mac store
typically takes between 5 to 7 years to break even. Part of the reason for
its long break even period has to do with the investments required per
store in terms of equipment and infrastructure. Much of the process
control equipment that allows Mac to dish out burgers and other orders
within its super fast time has to be imported.
 POSITIONING
 Positioning
  
 In adapting the General Market positioning of “America’s favorite fries” for the
Hispanic customer, it was determined to stress not only the irresistibility and
superiority of McDonald’s fries (“They are the best anywhere, you can’t resist them”),
but to add an element of family inclusivity; to stress that they are everyone’s favorite:
  
 “Favored by ‘big ones’ (adults) and ‘little ones’ (kids)”.
 McDonald’s wanted to revitalize the perceived superiority of their world famous fries
while simultaneously blunting aggressive com­petitive efforts by Burger King.
[Burger King had just begun market testing “new and improved” French fries.] To
help accomplish this, McDonald’s decided to use their partnership with the NBA as
the strategic “platform” for a special fries advertising effort. As such, the positioning
in the General Market evolved to “America’s favorite Guys enjoy America’s favorite
fries!”
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 MCDONALD’S
PRICING STRATEGY

 A look at McDonald’s menu indicates that Co. has targeted

mass market in India .All or most of the products have been
priced in such a way that average Indian consumer can afford
to enjoy fast food with family .This strategy has been dictated
by the
 
• Vegetarian Rs.
• Happy Meal 55/70/93
• McAloo Tikki 20.00
• McVeggie 39.50
• Paneer Salsa Wrap 49.50
• Non Vegetarian
• Happy Meal 70/93
• Chicken McGrill 20.00
• Filet-O-Fish 53.00
• Chicken Maharaja Mac 63.00
• Starters
• Veg Pizza McPuff 20.00
• Large Fries 38.50
• Others
• McShakes 28/39/50.50
• Condiment/Topping5.50
• Economy Treat (Burger & Fries)
• For 2 109.00
• For 4 199.00
• Family Value Meal
• Burgers, Fries, Happy Meal and Small Coke 199.00
•

•  
• McDonald’s pricing strategy can be further analyzed under following heads:
•
• Product Line Pricing:
• McDonald’s offers a range of products and pricing reflects the benefits of the range. So one
can order just a Coke or a Coke with a Burger at additional price.
•  
• Product Bundle Pricing:
• McDonald’s combines several products in the same package .For example one can buy a
McAloo Tikki alone or one can exercise various other options which give the customer a
range of products in a single basket.
•  
• Promotional Pricing:
• Discounting a combination of products as one product is also a strategy which McDonald’s
follows. McDonald’s clubs three or four products together as one and price of this new one
will be lesser than the sum total of individual product.
•  
• Value Pricing:
• McDonald’s has realized that Indian market is a price conscious market and this has forced
McDonald’s to provide value products. Examples are economy meal and value meal served
by McDonald’s in India.
 PROMOTION AND
COMMUNICATION
STRATEGIES

• Promotion is a key ingredient in marketing campaigns, consisting of diverse

collection of incentive tools, mostly short term, design to stimulate quicker or
greater purchase of particular product or services by consumer.

• Communication is a means to convey the message to the consumers. The

consumer tends to remember just one thing from any communication about the
product -- one strong claim, or one strong concept. Unique communications that
are simple enough to make a connection with the consumers create excitement
about your brand.
  Strong communication concepts are the foundation for success of a product. In
an environment of ever increasing clutter, the message can't afford to go
unnoticed. "A strong product concept along with a commitment to establish your
brand through good communication" generates positive attention and that's
crucial to succeed in the marketplace.
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THANK YOU